T-Mobile gearing up for spectrum auction with $2 billion in additional funds

T-Mobile is looking at making a major play in the US government’s upcoming low-frequency spectrum auction. The carrier announced today that it will be able to issue $2 billion in senior notes and then sell them to its parent company, Deutsche Telekom.

This news comes from an SEC filing, where T-Mobile outlined that it will be able to issue these senior notes, which will mature in 2021. The carrier also noted that these senior notes will have a 5.3% coupon until December 1 of this year.

T-Mobile is required to use these additional funds towards acquiring low-frequency spectrum, refinancing debt, or for other corporate demands. The Un-carrier will no doubt use these funds in the upcoming auction, as T-Mobile earlier revealed that it plans to invest up to $10 billion in low-band spectrum. Obviously AT&T and Verizon still have a lot more buying power, but these numbers still put the Magenta carrier in a good position for acquiring this low-band spectrum.

This agreement was put in place so that T-Mobile would have more financial flexibility, according to a spokesman for Deutsche Telekom.

We’re not sure what T-Mobile plans to do on the March 29 auction, but the carrier wants to buy enough low-band spectrum to cover the entirety of the US. $10 billion is more than enough to do that, but we’re not yet sure how aggressive AT&T and Verizon plans to be at the auction.

Either way, acquiring this spectrum would put T-Mobile in a very good place.

Brad is a tech enthusiast, writing and tinkering with all things technology since 2011. He currently bounces between the LG G3 and his beloved Moto X! His interests include reading, entrepreneurship, the gym, and of course, queso.